Havells, Blue Star: 7 hot stocks to keep your portfolio cool this summer

Bajaj Electricals and Whirlpool can see significant upside on follow-up buying, technical charts suggest. However, the overall market also needs to be positive for these stocks to gain further ground

Shares of household appliances companies have seen a mixed trend during the current year, so far. Among individual stocks, shares of Bajaj Electricals and Orient Electric have beaten the overall segment with a surge of 100 per cent 50 per cent, respectively. On the other hand, Blue Star surged over 20 per cent before retracing, while stocks like Symphony Limited and Whirlpool have not delivered any significant return, so far.

Although the overall trend in the segment seems sideways, the ongoing consolidation in some stocks may lead to a breakout, technical charts show.

Bajaj Electricals Limited (BAJAJELEC)
Likely target: Rs 1,400 to Rs 1,500 (breakout above Rs 1,200)
Upside potential: 16% to 25%

The price action encountered a hurdle above Rs 1,100 levels, which might not have been conquered efficiently as the counter has, lately, failed to successfully rally above Rs 1,200. This situation indicates an upside, but only in the case of a decisive close above Rs 1,200 levels. When that happens, the upside may see a strong breakout towards Rs 1,400 and Rs 1,500 levels. The recent move on the Relative Strength Index (RSI) suggests a positive reversal from the overbought category, as per the daily chart. The support comes at Rs 970 and Rs 900 levels. CLICK HERE FOR THE CHART
 
Orient Electric Limited (ORIENTELEC)    
Likely target: Rs 370 to Rs 385
Upside potential: 8% to 13%

The counter needs to decisively close above Rs 340 levels to break out on the upside. The breakout may lead to Rs 370 and Rs 385 levels, as per the daily chart. The counter has the support of 100-day moving average (DMA) placed at Rs 294.50 levels. The immediate support comes at Rs 305 levels, which needs to be considered on a closing basis. The medium-term outlook reflects a positive bias in the price action. CLICK HERE FOR THE CHART
 
Blue Star Ltd (BLUESTARCO)
Likely target: Rs 940 to Rs 965
Upside potential: 9% to 12%

The counter has broken out of the resistance of 100-DMA, indicating an upside towards Rs 940 and Rs 965, which are the next resistance levels. The immediate closing basis support stays at Rs 820 and the 200-DMA is placed at Rs 786 mark. The overall trend is bullish with volumes favoring the breakout -- suggesting a positive interest of market participants -- as per the daily chart. CLICK HERE FOR THE CHART
 
Havells India Limited (HAVELLS)
Likely target: 1,200 to Rs 1,300 (after breakout above Rs 1,100)
Upside potential: 9% to 18%

The current weakness has taken reversal nearing the 200-DMA, placed at Rs 948 levels. The overall medium-term trend is stable above the support of 200-DMA. On the higher side, the counter needs to close firmly above the hurdle of Rs 1,100 levels. In case of a decisive breakout, the counter may rally towards Rs 1,200 and Rs 1,300 levels. The RSI has broken out the resistance of the 45 value, indicating a positive underneath strength. CLICK HERE FOR THE CHART
 
Symphony Limited (SYMPHONY)
Likely target: Rs 1,148
Upside potential: 8%

The counter is managing to rise upward with the support and breakout of the RSI. The indicator has broken out of a “double bottom” formation. This up move on the price is indicating a rally towards Rs 1,148 levels, which is the 100-DMA, as per the daily chart. As long as the counter upholds the support of 200-DMA, currently placed at Rs 1,032 levels, the upside bias is likely to witness buying momentum. CLICK HERE FOR THE CHART
 
Johnson Controls-Htch Ar Cndtng Ind Ltd (JCHAC)
Outlook: Consolidation / sideways movement

The counter is trading below the 200-DMA, placed at Rs 2,370 levels. On the downside, the support comes at the recent reversal levels of Rs 2,200 levels. In the current scenario, the price action indicates sideways movement. The trend below the 200-DMA is perceived as weak, however, the counter is not showing a major breakdown, as per the daily chart. CLICK HERE FOR THE CHART

Whirlpool of India Limited (WHIRLPOOL)
Likely target: Rs 2,500 to Rs 2,700
Upside potential: 11% to 20%

The counter has broken out of the 200-DMA resistance and is attempting follow-up buying. Volumes have been sluggish in the current momentum. However, the Moving Average Convergence Divergence (MACD) is showing a positive direction by staying above the zero line. The closing basis support stays at Rs 2,200 levels with a rally expected in the direction of Rs 2,500 and Rs 2,700 levels. CLICK HERE FOR THE CHART